1. Impact of 3D Printing on Global Supply Chains by 2020
Varun Bhasin & Raheel Bodla

2. Agenda What is 3D Printing Methodology
3D Printing vs Traditional Manufacturing
3D Printing Growth & Cost Projection
Results
Conclusion

3. Research Question
Quantification of the Impact of 3D Printing on Automotive and Life Sciences Supply Chains

4. What is 3D Printing Source : CNN
Talk About the capabilities of 3D Printing, Materials Used
Source : CNN

5. Methodology Create Process Flows for current Supply Chain
Define Assumptions for adoption of 3D Printing
Create Process Flows for TO-BE Supply Chain with the adoption of 3D Printing
Understand Cost Components of Supply Chain
Collect Data for each cost component
Develop a Mathematical Model to Compute and Compare Total Supply Chain Cost
Perform Sensitivity Analysis

6. Total Supply Chain Cost Inventory Holding Cost Pipeline Inventory Cost
Methodology
Total Supply Chain Cost
Product Cost A
Order Cost B
Transportation Cost C
Inventory Holding Cost D
Pipeline Inventory Cost E
Stock Out Cost F
Order Cost = Order Cost x (Demand/Order Quantity)
Pipeline Inventory Cost = Product Cost x Holding Rate x (Demand over Lead Time)
Transportation Cost = Demand x (Cost/Mile) x Distance in Miles
Stock Out Cost = Stock Out Penalty x No. of Orders x Probability of Stock Out Per Cycle
Inventory Holding Cost = Product Cost x Holding Rate x (Cycle Stock + Safety Stock)
Product Cost = Cost Of Manufacturing

7. Key Deliverables
Mathematical Model to Compute and Compare Total Supply Chain Cost for Current vs. Future Supply Chain Cost (After adoption of 3D Printing)
Use Case on adoption of 3D Printing in
Automotive Industry
Life Sciences Industry

8. Difficulty in Quantifying the Impact
Literature covers qualitative descriptions only
Lack of primary data
Adoption of 3D Printing
Decrease in product cost due to adoption
Limited sources of data
Automotive & Life Science industry only
2 US Locations only
By explicitly stating all assumptions, our model is amenable to what-if analysis

9. 3D Printing vs Traditional Manufacturing
Simple product for preliminary analysis
Currently produced by 3D printing & traditional Manufacturing
iPhone Case

10. 3D Printing vs Traditional Manufacturing

11. 3D Printing Growth & Cost Projection

12. 3D Printing Growth & Cost Projection

13. Results
We looked at the impact from two different echelon in Supply Chain using use cases
Case I – The Warehouse
Case II – Life Sciences
Case III – Automotive

14. Case I – The Warehouse

15. Case I – The Warehouse
76%
87%
35%

16. Case I – The Warehouse
85%
78%
70%

17. Sensitivity Analysis

18. Case II – Life Sciences

19. Case II – Life Sciences
62%
98%
98%
95%
60%

20. Case III - Automotive

21. Case III - Automotive
33%
96%
99%
95%
20%

22. Conclusion What does this mean for Automotive & Life Sciences Industry
End Customer
Logistics Industry

23. Questions